Retirement Doesn't Look Golden for Many Americans

Over half of Americans don’t feel secure about their upcoming retirement and more than a third could be living their golden years in poverty, according to a bank survey of people ranging from age 25 to 75 years.

The annual Wells Fargo Retirement Survey found that paying the monthly bills is the most important day-to-day financial concern for 52 percent of middle-class Americans, up from 37 percent who felt that way last year. And 53 percent of those surveyed said that they are not confident that they have saved enough for retirement, up from 42 percent the prior year.

In order to be able to start saving for retirement, 51 percent said they have to “significantly” cut back on spending. For those in their 50’s - the prime retirement-saving years - it jumps to 61 percent.

“It is so tough for Americans to save for retirement, and we feel it is very important to keep shining the light on this issue. People say they’ll work longer, but how possible will this be for millions of Americans? Preparing for retirement can’t be kicked down the road because the other picture that is emerging is how many people will live very close to the poverty line in retirement. We’ve got to marshal our resources as a country, an industry and as individuals to deal with the issues creating this cliff,” said Joe Ready, director of Wells Fargo Institutional Retirement and Trust.

The median amount Americans said they need for retirement is $300,000, but the median amount saved was $25,000. With the monthly burdens taking most of their income, only 16 percent of those surveyed said that saving for retirement is a key concern. It’s clear that Americans are putting their financial priorities on the here and now before they are worried about days long in the future - retirement planning came in third place after planning for a home remodel and planning for a vacation.

Nearly a third of survey respondents said they would need to “work until they are at least 80” to be able to live comfortably retirement, up from a quarter who said the same thing last year.

“People tell us that retirement preparation should be on their shoulders but they are grappling with the financial pressures of each day. As a result, retirement has become a guessing game. But, people can’t afford to approach twenty plus years of their life by ignoring the facts. People are telling us that times are tough financially – even more so than a year ago -- but people also need to take action,” said Laurie Nordquist, director of Wells Fargo Institutional Retirement and Trust.


Source:
Wells Fargo